Corporate Lawyer
Halt | December 3, 2022 | 0 Comments

6 Ways a Corporate Lawyer Can Help Your Business

Starting a business is an exciting journey for any new business owner and heralds the beginning of being their own boss and having greater independence regarding the direction they wish to take their career. However, as any aspiring entrepreneur knows, the path to success can be a challenging one. According to data from the Bureau of Labor Statistics (BLS), over 20% of small businesses fail in their first year, and nearly 50% of small startups fail within the first five years, making the risk of failure a realistic one.

When it comes to launching a business, many new owners focus on areas like their marketing strategy, hiring talent, and raising finances, while the thought of hiring the services of a corporate lawyer only becomes relevant if there is a legal issue that needs to be resolved. In this article, we will explore some of the reasons you should consider hiring a legal advisor skilled in corporate law to guide your business from the beginning.

Benefits of Hiring a Corporate Lawyer

Selecting a Business Structure

A corporate lawyer

A corporate lawyer can advise you on the best way to structure your business, ensuring you understand your options and choose the most appropriate structure to benefit your business. This crucial decision will determine areas such as your level of personal liability, how much tax you pay, and your ability to raise funds.

From partnerships and sole proprietorships to limited liability corporations (LLCs) and cooperatives, a corporate lawyer such as the ones at Prudent Law can help you choose the right structure for your business.

Drafting Agreements

A corporate lawyer can draft key documents such as a shareholders’ agreements, partnership agreements, and employment contracts. Establishing the rights and duties between the owners of the business and any relevant third parties is essential to ensure each party is treated fairly and their interests protected in the event of any disputes which may arise. A watertight agreement that covers all eventualities can save your business a lot of time and money from the possibility of costly legal battles and can also outline less litigious methods for addressing conflicts such as alternative dispute resolution.

In addition to their drafting skills, a corporate lawyer can also review any documents your business has to sign, checking they are legally sound and do not contain any unfavorable terms or conditions which could harm your business in the future. This can include such documents as commercial lease agreements, non-disclosure agreements (NDAs), vendor service agreements and warranties.

Risk Management

Legal compliance can put a huge strain on any business, especially a fledgling one. Ensuring yours meets all legal and regulatory requirements can be a daunting task and one which needs to be monitored regularly. From reporting and filing requirements to licenses, permits, and certifications, the list of areas to stay compliant can become burdensome.

Hiring a corporate lawyer can help ensure your business stays abreast of any regulatory updates and changes which will affect your business. If there are any adjustments your business needs to make to maintain compliance, a corporate lawyer can make the necessary recommendations to ensure your business does not fall foul of the law.

Intellectual Property

Intellectual Property

Intellectual property (IP) law can have wide-reaching implications for any new business. Before you settle on a business name or logo, a corporate lawyer can help you carry out the necessary checks to ensure they are not already in use, helping you to avoid any costly and damaging disputes down the line. They can also help you seek the necessary permissions needed to guard your business from infringing third-party rights which can also result in legal action, penalties and fines.

Along with ensuring your business does not violate the IP rights of others, a corporate lawyer can also help it protect its own IP. For example, your business may have spent considerable amounts of time and money researching and developing a particular technology giving it its competitive advantage. A patent will ensure your idea, and ultimately your business is protected from competitors who may attempt to replicate your technology. In this way, a corporate lawyer can help your business protect its innovations by making the relevant patent or trademark applications, safeguarding your brand and your products.

Legal Advice

Having a corporate lawyer on board will ensure you always have trusted legal counsel to advise you on business matters helping you make the best decisions. A dedicated legal expert can advise you of the legal implications of a business decision and any risks that may arise as a result, such as financial or regulatory, and how these could affect your business in the long term.

For example, a lawyer can help you assess the benefits and risks of issuing more shares or entering a new market. If you need to raise more funds, they can assist you with your financing options as well as negotiate key terms with lenders or investors. By consulting a legal advisor before making any major business decisions you can greatly reduce the risk of any errors or omissions which could cost your business reputationally or financially later down the line.

Dispute Resolution

The potential for a dispute to arise when running a business is quite high. From landlord and tenant issues and adversarial supplier relationships to intellectual property disputes and breaches of contract, there are many instances when you may encounter an issue that requires legal assistance. If you find yourself in such a situation, your lawyer can negotiate on your behalf and advise you of the most appropriate way to resolve the matter. In the event that it cannot be resolved, they can represent your business in a lawsuit, ensuring its best interests are being observed.

Commercial Disputes

A corporate lawyer is a valuable asset to have on hand and their ability to resolve disputes can greatly reduce the risk of your business being embroiled in lengthy and expensive litigation. Knowing these matters are being dealt with by an experienced attorney can help you focus on driving your business rather than trying to tackle such matters on your own.

Conclusion

There are many benefits that a corporate lawyer and a business formation attorney can bring to your business and their expertise can ensure your operations run smoothly and in line with the law at all times.

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